17:3B-22 - Prepayment in a closed end credit arrangement - New Jersey Statutes

17:3B-22.    Prepayment in a closed end credit arrangement
    Prepayment in a closed end credit arrangement a.  An individual borrower may prepay a loan in full at any time without payment of any prepayment charge.

   b.   If a borrower wishes to prepay a loan, a lender shall not use the "rule of 78's" to calculate the amount of interest owed by the borrower. The lender shall use a simple interest basis to calculate the amount of interest owed by the borrower.

   L. 1985, c. 81, s. 19, eff. March 14, 1985.